The difference between perfect and monopolistic competition is

Monopolistic competition has product differentiation

Which economic change best explains a reduction in coffee prices?

improved technology for commercial production

Which of these would be found in a healthy market?

companies motivated by the profit motive

Which government action would BEST prevent the practice of collusion (price-fixing)?

creation of anti-trust legislation by the federal government

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Economics Chapters 4-7 Supply, Demand, Prices

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Answers

1
Minimum wage laws are an example of which type of government manipulation of the market?
market-clearing
price ceiling
unconstitutional
price floor
2
Why would the U.S. government seek to limit the development of business monopolies?
to encourage competition
to increase production levels
to improve hiring practices
to guarantee low prices
3
The difference between perfect and monopolistic competition is
Monopolistic competition has product differentiation
Pure competition has product differentiation
there is none
4
The stage of production when increased output due to increased input starts to level off
Marginal Returns
Maximum productivity
Negative Returns
Diminishing Returns
5
Mergers and acquisitions might result in
smaller companies
increases in consumer demand
more competition
inadequate competition
6
A payment made by the government in order to encourage a specific behavior is a
regulation
tax
subsidy
tariff
7
Advantages of this type of business organization are less risk and able to raise capital fast
sole proprietorship
partnership
limited liability partnership
corporation
8
Which policy would be considered most "business-friendly"?
raising the minimum wage
strict new environmental standards
deregulation
nationalization
9
Which of the following is NOT a characteristic of free enterprise capitalism?
profit motive
government planning
competition
voluntary exchange
10
Which economic change best explains a reduction in coffee prices?
adoption of tariffs on imported goods
rapid wage increases for factory workers
improved technology for commercial production
increased need for subsistence farming
11
If the demand for butter is low because margarine is available much cheaper, this shows the
substitution effect
income effect
supply elasticity
effect of complements
12
A market with many buyers and sellers, all are free to operate and fully informed
Monopoly
Perfect competition
Oligopoly
Socialism
13
Which of these would be found in a healthy market?
the government controls all resources
a lack of information for consumers
companies motivated by the profit motive
only one company that consumers can buy from
14
Why do laws limit the free market in our system?
a totally free market does not always provide for all needs
to protect workers and consumers
because sometimes social goals conflict with economic ones
all of the above
15
A surplus would be evident when
Demand is greater than Supply.
Supply equals Demand
Supply is greater than Demand.
16
Which government action would BEST prevent the practice of collusion (price-fixing)?
approval of an international agreement to increase trade
passage of reforms to improve hiring for civil service jobs
establishment of an executive order to segregate the army
creation of anti-trust legislation by the federal government
17
The lessening amount of satisfaction brought by each additional purchase of a particular item
scarcity
trade-off
elasticity of use
diminishing marginal utility
18
Fixed costs include
variable costs
the cost of paying workers
rent or property taxes
the cost of raw materials
19
Which of these types of investment is, by definition, already diversified?
common stock
bond
preferred stock
mutual fund
20
A market with only a few suppliers
Perfect competition
Oligopoly
Monopolistic competition
Monopoly

Economics Chapters 4-7 Supply, Demand, Prices Flashcards | StudBud